UPI Is No Longer Free – Upto Rs 5 Per UPI Transaction Will Be Charged From You
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UPI Is No Longer Free – Upto Rs 5 Per UPI Transaction Will Be Charged From You
The Unified Payments Interface, which made transactions and transfers of money so much easier for us, will now come at a cost. Soon, P2P and UPI funds transfers will be chargeable by some banks and it won’t take long for other banks to implement this rule.
UPI transactions were, up until now the only mode of transfers which were free of charge, but this sudden decision is sure to make a dent in the ease of the much-loved mode of online transactions.
These charges will be applicable from May 1, 2019.
Kotak Mahindra Levies Charges on Transactions
Kotak Mahindra Bank is the first one in line and has announced that charges will be applicable on UPI payments. After the first 30 transactions in a month, Kotak plans to levy a charge on each P2P and UPI transactions, and this includes the transfer of money using the bank account number and IFSC (Indian Financial System Code).
Rohit Rao, who is Kotak Mahindra Bank’s Chief Communication Officer said, “While we continue to offer the first 30 P2P UPI transactions per month at no cost, charges are being introduced only for all subsequent UPI P2P fund transfers, beyond the monthly 30 free transactions.”
Every transaction made through UPI, below or equal to the amount of Rs. 1000 will be charged with Rs. 2.50. If the amount of transaction is above Rs. 1000, each transaction will be charged Rs. 5. Additionally, an 18% GST charge will be levied as well.
Charges Applicable on Paytm, PhonePE and Google Pay
The above charges will be applicable across all the platforms which offer the option of UPI payment, including Paytm, PhonePe, Google Pay, BHIM and the rest. Paytm, Google Pay and PhonePe have been the platforms which clocked the highest number of UPI transactions, while BHIM has not been able to fight as hard. The number of Paytm’s transactions were as high as 221 million, Google Pay and PhonePe made it to 220 million transactions. BHIM, unfortunately, could clock only 14-18 million transactions only.
There are about 139 banks that offer UPI payment as an option for online transactions. All big names like ICICI, HDFC, and SBI are expected to go down the same way as Kotak Mahindra, as reported by sources within the banking industry.
UPI: Convenient Way Of Fund Transfers?
Rao also said that the bank is still encouraging people to opt for UPI payments. Apparently, most of Kotak’s customers carry out only 5-10 transactions through UPI. He also said, “This is intended to prevent abuse of the UPI system and will not impact genuine customers. Receiving money through UPI as well as all merchant transactions continue to be free.”
The NPCI, National Payments Corporation of India hasn’t commented on these new and unwanted changes on UPI transactions.
Will this bring down the usage of UPI transactions across the nation? Share your thoughts with us in the comments section!
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Long story cut to short! 👍
Good Move. Now Lets See How Will Paytm Gain Top Place In No.Of Txns 
Don’t know why but it feels like blessings in disguise. 
Not many will understand the same.
Don’t think so bro, you just can’t ask for Digital India & UPI charges at the same time.
As this move will decrease the users, its like going back to where they started
Am I the only one who doesn’t care about this change because I haven’t created any UPI id so far? 
Take benefits from upi cashbacks before upi takes benefits from you. 
U Pay India
Hmm… 30 free txns. I do around 5 – 6 UPI txns every month through phonepe mainly and UBI bank is charging Rs. 3 per txn but at the same time paytm charges zero – linked with SBI.
TBH 30 free txn is more than enough at-least for me.
yes, Kotak bank said 95% of kotak bank customer do an average of 5-10 UPI transfer.
and merchant UPI transaction is FREE.
Merchant UPI transaction means all shopping, recharge, bill payments, credit card payment, wallet load, ola, uber, movies, zomato, swiggy etc
Chill, no bank will charge for UPI except Kotak bank
Kotak Bank har chiz me charge leta he,
Kotak bank debit card Rs300 charges
Kotak net banking PIN generate Rs100 charges
aur bhi bohot se charges ha kotak bank me
Uday Kotak ko bas paise se matlab he, ek thora sa bhi kahi bhi losses Uday Kotak ko bardast nhi hota he
uppar se kotak bank ek unique bank ha jo 6 digital ka ATM PIN & UPI PIN deta ha, just because koi fraud na ho jaye, toh bank ko paise na dena pare, jo sahi baat bhi ha dusri aur se dekha jaye toh
Even SBI has 6 digit upi pin 
Kotak is very generous with their UPI offer but at the same time United Bank of India is charging Rs, 3 to 6 per UPI txn.
Are you sure tech guru ji because UPI is still free by ALL banks.
Even NPCI claims that UBI charges NIL (but ofcourse)
https://www.npci.org.in/united-bank...ia
When there are less number of transactions. Cashback value might increase 
Did anyone notice that paytm rupay debt card will charge you rs20 for your 3rd cash withdrawal? Just like many other so called 0 balance accounts.
Itne years se soh rahe the kya ?
Lets look at things from an exceptional imperial point of view..
How can I ask you to pay a tax for every breath you take? remember they tried this and it sort of works and a great deal of money changes hands.. You can even sell it like you don’t breath in enough and some fat guy needs more air, you can sell him your air.. Was supposed to get a strangle hold on the planet.. But too much opposition especially from the Chinese.
Now there was another idea.. How to tax every transactions on the planet..
This idea has been floating around for 25 years now. And local UPI is the lawn to the taj mahal.. There is a lot more to come. Just like how you can buy and sell stocks and half a dozen entities in between gets their cut even though it is supposed to be a direct sale between buyer and seller, did you know that the house buys what you sell and sells you what you buy and not the real buyer or seller in most cases? Even the UN was involved but I highly doubt goldman sacks would allow a freeloader like the UN to have any control over the planet.
The game here is much bigger than small irrelevant indian banks or even india which also is irrelevant in the grand scheme of things. But its a great test bed as bill gates found out to test out his medical research business which might end up being more valuable and a monopoly than Microsoft.
What is worse is even Russia and China would get sucked into it just like they are all stuck using swift for any international transaction.
If any Indians were involved in the architecture of this, he most likely did not even grow up in India and would be one hell of an innovator like Tesla, which means he works for goldman sacks and not for anyone in india.
Although GS is far smaller than JPM, who seem to hire second tier braniacs who publish their synopsis while JPM who controls like the entire money supply on the planet many times over seems to hire potential candidates before they even have the time to get as far as presenting their innovative ideas for submission for research. I cant believe they became so big but hardly anything leaks out about them.
knew this would happen.
long back there was proposal to charge per bank transaction instead of income taxes.
Interesting to know that this topic became a government bashing point !
Disappointed to know that for almost everyone on this thread Digital India only means UPI/Digital Payments. It is a failure on the part of Government that it could not publicize Umang. I guess nobody knows about Umang. I am sure no one knows that Digital India helps save Rs.10 per cylinder of gas refill. Digital India helps save 10% in Propery Tax in many cities in Maharashtra (I clearly remember that Pune Municipal Corporation was charging 2.5% extra on Property Tax if paid by any means other than cash). Digital India helps save on Electricity Bill by MSEDCL. We dont appreciate an instant refund from Income Tax because of Digital India which was taking more than 8 months earlier. We have no clue on how cumbersome, time consuming and corrupt system it was when we have to withdraw/transfer our own money in EPF which is now completely streamlined after Digital India. No one knows that how Digital India has curtailed the age old corruption in all Government bids. I am sure Government is failed to explain how it helped India to save about 70,000 Cr./year, every year, using Digital India campaign. Sad.
#Update Now UPI turn over.
Its time to turn PayTM. (Some people saying if we done merchant transactions it will not charge. Not confirmed)
According to RBI guidelines from tomorrow onwards every UPI transaction will be charged 2.5% +gst
Source: ABPB Bank CC
Note: First 30 transaction will be free in months.
2.5%!!!!!
R u sure about the data
after the elections government will loot people very badly its like (ROI) return on investment on election black money which they have invested….hope so people have to reunite and make a revolution
It was long overdue. Govt was waiting for elections only. July 10 onwards it will be charged. Pehle demon karo fir bank mein apne khud ke paise jama karne ke paise looto o fir atm se nikaalne ke paise looto fir UPI ka jhunjhuna de do. Hope google pay doesn’t starts charging too to keep studies of Indian financial data alive. Fokut mein to google pay bhi nahi deta hai.